Bombay High Court
The Pr.Commissioner Of Income Tax-4 vs Reliance Supply Chain Solutions Ltd on 21 January, 2019
Bench: Akil Kureshi, M.S. Sanklecha
17. os itxa 947-16.doc
R.M. AMBERKAR
(Private Secretary)
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
O.O.C.J.
INCOME TAX APPEAL NO. 947 OF 2016
Pr. Commissioner of Income Tax -4 .. Appellant
Versus
M/s. Reliance Supply Chain Solutions Ltd .. Respondent
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Mr. A. R. Malhotra a/w Mr. N.A. Kazi for the Appellant
Mr. P. C. Tripathi i/by Raj Darak for the Respondent
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CORAM : AKIL KURESHI &
M.S. SANKLECHA, JJ.
DATE : JANUARY 21, 2019.
P.C.:
1. Revenue is in the appeal against the judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 13.8.2015 raising following questions for our consideration:-
"(i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of Rs. 39,79,354/- of Project Development Expenses made by the Assessing Officer considering it as Capital Expenditure against the Assessee's claim to be considered it as Revenue Expenditure u/S 37(1) of the Income Tax Act?
(ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of Rs. 2,97,42,700/- made by the Assessing 1 of 3 ::: Uploaded on - 23/01/2019 ::: Downloaded on - 23/01/2019 23:22:15 :::
17. os itxa 947-16.doc Officer on the basis of actual payment of unpaid gratuity and unpaid leave encashment during the year out of the total project development expenditure considering it as Capital Expenditure against Assess's claim to be considered it as Revenue Expenditure to be allowed u/S 43B and 40A(7) of the Income Tax Act?"
2. Question No. 1 pertains to the Assessing Officer deleting a sum of Rs. 39.79 lacs being part of the project development expenses, considering as a capital expenditure against the assessee's claim of the expenditure being revenue in nature. We notice that identical question had come up for consideration before the Tribunal in case of this very assessee for earlier assessment year 2008-09. The Tribunal had held the issue in favour of the assessee. In the present impugned judgment also, the Tribunal has relied on the same order. We note that the Revenue had carried the matter in appeal before the High Court by filing Income Tax Appeal No. 892 of 2014 (CIT-4 Vs. M/s. Reliance Supply Chain Solutions Ltd) which was dismissed on 5.7.2017. No question of law, therefore, arises.
3. The second question pertains to disallowance of sum of Rs. 2.97 crore (rounded off) by the Assessing Officer towards 2 of 3 ::: Uploaded on - 23/01/2019 ::: Downloaded on - 23/01/2019 23:22:15 :::
17. os itxa 947-16.doc the assessee's expenditure for gratuity and leave encashment. We notice that the CIT(A) held that the expenditure was actually incurred and that there was no question of disallowance in terms of Section 43B of the Act. No question of law, therefore, arises.
4. In the result, the Tax Appeal is dismissed. [ M.S. SANKLECHA, J. ] [ AKIL KURESHI, J ] 3 of 3 ::: Uploaded on - 23/01/2019 ::: Downloaded on - 23/01/2019 23:22:15 :::